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Exercise 14-4 Prepare a Statement of Cash Flows [LO14-1, L014-2] The following changes took place lest year in Pavolik Company's balance sheet sccounts: Asset and
Exercise 14-4 Prepare a Statement of Cash Flows [LO14-1, L014-2] The following changes took place lest year in Pavolik Company's balance sheet sccounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities Cash $ 35 I $ 40 $ SD Accounts receivable $11e I Income taxes payable Bonds payable Common stock Inventory Prepald expenses Long-term investnents Property, plant, and equipnent Accumulated depreciation $ 91 $ 60 S 185 I $150I $ 541 Retained eamings D- Decrense:- Incrense Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 wes sold for $9. In addition. the company declared and pald $30 in cash dividends during the year Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavoltk did not retire any bonds during the year or lssue any new common stock. The company's Income statement for the year follows: Sales Cost of goods sold Gross margin Selling and adninistrative expenses Net operatingR income Nonoperat Ing itens Loss on sale of land Gain on sale of investments $700 300 184 116 $ (6) Incone before taxes Income taxes 120 S 84 Net incone The company's beginning cash balance was $90 and its ending belance wes S85. Required: 1. Use the Indirect method to determine the net cash provided by operating activities for the year. 2 Prepare a statement of cash flows for the year. Complete this question by entering your answers in the tabs below. kaquired 1 Raquired 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cach outflows as negative amounts.) Pavolik Company atatement of Cach Flows Operating activities Not cash provided by operating activities Investing activites: Additions to property, plant &oguipment Proceeds from sale of land Financing activities: Purchase of oommon stock issuance of bonds payable Boginning cash and cash aquivalents Ending cash and cash oquivalents Required 2> ( Requlred 1
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